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Hotel Sales Reach New Record

PORTSMOUTH, NH-According to Lodging Econometric's Sales and Pricing Trends Report for 2003, 573 hotels with reported selling prices were traded with total sales amounted to what the report terms a "record" $5.6 billion.

By Naomi Grossman | Updated on May 20, 2004

PORTSMOUTH, NH-A recently released report on the hotel industry indicates that a record number of hotels traded hands in 2003. According to Lodging Econometric’s Sales and Pricing Trends Report for 2003, 573 hotels with reported selling prices, having 79,790 rooms, were traded with total sales amounted to what the report terms a “record” $5.6 billion .

The average selling price per room was $70,308, which the report says demonstrates a 16% increase off the cyclical bottom established in 2002. Furthermore, when all transactions were accounted for–including merger and portfolio acquisition activity–850 hotels with nearly 120,000 rooms changed hands having a total value of a record high $8.5 billion.

“It was a banner year for transactions,” says Patrick Ford, president of LE. “There were 573 fee-simple transactions in 2003–just 14 fewer than the high of 587 set in ’02, but the average hotel size, at 139 rooms, and total sales proceeds, at $5.6 billion, set records.”

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